Asian stock markets wrapped up the week on a high note, boosted by positive movement on Wall Street, achieving their highest point in over three years. Conversely, the dollar weakened due to doubts about the Federal Reserve's independence and increasing expectations for rate cuts.
Growth of Asian Stock Markets
The MSCI index of Asia-Pacific shares outside Japan reached its highest level since November 2021, rising 0.2%. Japan's Nikkei climbed 1.5%, briefly surpassing 40,000 for the first time since January.
Dollar Weakness and Its Implications
The dollar fell to a three-and-a-half-year low and was set for a 1.4% weekly drop. Year-to-date, it has lost more than 10%, which may mark its largest first-half drop since the early 1970s. The euro traded at $1.1693, while the pound was at $1.3733.
Oil Market and Other Assets
Oil prices are heading for their biggest weekly drop in months following a ceasefire between Iran and Israel. Brent rose 0.41% to $68.01 a barrel, while U.S. crude added 0.46% to $65.53, though both were down more than 10% for the week.
The overall positive trend in Asian stock markets and the weakening of the dollar highlight current financial trends, as well as the uncertainties associated with global political and economic situations.
